XRP trades near $1.92 as nearly half of its circulating supply now sits at a loss. The cryptocurrency has failed to break above the $1.94 resistance level, remaining trapped in a six-week downtrend that has steadily eroded investor profitability.
What Happened: Profitability Decline
On-chain metrics show XRP's supply in profit has dropped to 52%, marking a sharp deterioration from recent weeks. The last time profitability reached similar levels was in November 2024, when the cryptocurrency entered an extended drawdown period.
Distribution from large holders adds pressure to the declining price. Addresses in the top 1% now control 87.6% of total supply, down from 87.7% at the start of December, according to Glassnode data.
These wallets include institutional-scale holders whose gradual selling signals caution about the cryptocurrency's near-term prospects.
Even modest distribution from this group can influence price action when broader demand remains weak.
Also Read: Bitcoin Buying Activity Surges 59% As Price Remains Capped At $89,250
Why It Matters: Recovery Risks
Historical patterns suggest elevated downside risk when XRP's supply in profit falls below 50%. The cryptocurrency remains locked between $1.85 and $1.94, with bearish sentiment keeping it vulnerable to additional selling pressure.
A decisive break above $2.00 would invalidate the current downtrend and improve supply profitability.
Such a move could restore investor confidence, though current market conditions show limited momentum for a sustained recovery attempt without renewed demand.
Read Next: Solana Recovery Faces Resistance Near $128 As Technical Barriers Threaten Upside Momentum